Legal Brief for July, 2010

Travel Insurance - A Great Idea, But Read The Fine Print

One of the most common items on a pre-holiday "to do" list is to arrange for travel insurance.  A quick stop in at the Alberta Motor Association or your travel agent, fill in a form or two, pay the premium, and you’re all set, right?  Couldn't be easier, or so you thought.

Like other types of insurance policies, there are potential pitfalls and risks involved with taking out a policy of travel insurance.  It will pay to give some thought to what you want coverage for, and then to make sure the policy you are receiving will provide you with that coverage.

There are many areas that people generally think of when arranging travel insurance.  One of the main items is of course medical expense coverage.  Medical costs can be enormous in some countries.  We have all heard stories about the astronomical bills that people can run up if they have to make a hospital visit in the U.S.  Don't assume that you are fully covered by the one size fits all policy that you just signed up for at the travel office.  You would be well advised to consider the following items:

1. Does the policy have a deductible that you have to pay first before any coverage?  If so, how much is the deductible?

2. Is there a maximum amount of coverage available on the policy?

3. If you are going to be participating in some activities or events, for example, scuba diving, will those activities be covered by the policy?  Insurance policies usually have "exclusion clauses", which will eliminate coverage for certain things.  Do you know what activities your policy excludes from coverage?

4. Do you have an existing medical condition?  If so, have you disclosed it to the insurer?  If not, and you experience a flare up of the condition while on holiday, the insurer will likely deny coverage for reimbursement of your expenses once you are back home.

5. Are you covered for incidental expenses, such as having to re-book airline flights, or extra hotel stays resulting for other family members while you are in the hospital?  These costs can add up very quickly.

6. Make sure your dates of coverage match the exact time you will be away and arriving back.  If you are traveling from the Far East for example, and you cross the international date line, you may be arriving home a day later than you assumed, and your insurance coverage may have expired one day earlier.

When in doubt, talk to your travel agent about the terms of your policy.  The few minutes you spend now may save you from a lot of grief later on.  It will make your summer travel all the more enjoyable.